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Analysts Recommend Moderate Buy for PVH Corp Amid Positive Earnings

PVH Corp. (NYSE: PVH) has garnered a consensus recommendation of “Moderate Buy” from analysts, according to MarketBeat Ratings. This assessment comes from a review by sixteen brokerages covering the company, with seven analysts issuing a hold rating and nine providing buy ratings. The average 12-month price target for PVH stock stands at approximately $95.27.

Several recent reports have provided insights into analysts’ outlook on PVH. Notably, TD Cowen reaffirmed its hold rating, lowering the price target from $98.00 to $74.00 in a report dated July 9, 2023. In contrast, Needham & Company LLC maintained a buy rating with a price target of $115.00, while Morgan Stanley raised its target from $64.00 to $70.00, assigning an “equal weight” rating on August 28, 2023. The Goldman Sachs Group also adjusted its target upward from $81.00 to $91.00, reinforcing its buy recommendation.

Strong Quarterly Performance

PVH recently reported its quarterly earnings on August 26, 2023, showcasing robust financial performance. The company achieved earnings per share (EPS) of $2.52, surpassing analysts’ expectations of $1.97 by $0.55. Revenue for the quarter reached $2.17 billion, exceeding the anticipated $2.11 billion. PVH’s net margin was recorded at 5.34%, with a return on equity of 11.90%. This performance marks a year-over-year revenue increase of 4.5%, despite the previous year’s EPS of $3.01.

Looking ahead, PVH has provided guidance for the third quarter of 2025, projecting an EPS between $2.35 and $2.50. For the full fiscal year, the company anticipates an EPS ranging from $10.75 to $11.00. Analysts predict a total EPS of $11.67 for the current fiscal year.

Dividend Announcement and Insider Activity

On September 24, 2023, PVH will pay a quarterly dividend of $0.0375 per share to shareholders of record on September 3, 2023. This dividend, which represents an annualized payout of $0.15, yields 0.2%. The company’s payout ratio currently stands at 1.68%.

In addition to the dividend announcement, CEO Stefan Larsson made headlines by purchasing 15,645 shares of PVH stock on June 26, 2023, at an average price of $63.92 per share, totaling approximately $1,000,028.40. Following this transaction, he holds 269,438 shares, valued at around $17.22 million, reflecting a 6.16% increase in his ownership.

Institutional Investor Activity

A wave of institutional investment activity has also been noted recently. For instance, BNP Paribas Asset Management Holding S.A. established a new position in PVH valued at $38,000 during the second quarter. UMB Bank n.a. increased its stake by 63.3%, owning 619 shares valued at $42,000 after acquiring an additional 240 shares. Similarly, Hantz Financial Services Inc. expanded its stake by 1,284.4%, now holding 623 shares valued at $43,000.

Smartleaf Asset Management LLC and Allworth Financial LP also reported increases in their holdings, with growth rates of 30.0% and 78.2%, respectively. Collectively, institutional investors and hedge funds own 97.25% of PVH stock, indicating significant confidence in the company’s future prospects.

PVH Corp. continues to navigate the apparel industry with a diverse portfolio that includes brands such as Tommy Hilfiger and Calvin Klein. As the company moves forward, its financial health and strategic initiatives will be closely monitored by investors and analysts alike.

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